THE BANKS WILL HAVE TO PAY
Socialist government set to defy the courts in order to save customers thousands of euros over mortgage tax
By Dave Jones THE PUBLIC outcry caused by a Supreme Court ruling – which reversed a previous decision ordering banks to pay the substantial mortgage tax rather than their clients – has forced the government to announce a reform of the law.
Financial experts stated that the original court decision over the ‘impuesto de actos jurídicos documentados’ – which every customer who contracts a mortgage in Spain has to pay – could cost banks or regional governments billions of euros in back payments. The tax inflates the price of a property sale for buyers, although the amount varies in each region with clients in Valencia, Murcia and Andalucía paying the most, which is 1.5% of the total price of a mortgage – the highest amount in Europe.
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